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2 Points: 1 A ten year project costs $370,400 and produces $68,725 cash flows at the end of each of the following ten years. Should
2 Points: 1 A ten year project costs $370,400 and produces $68,725 cash flows at the end of each of the following ten years. Should this project be accepted based on the profitability index rule if the discount rate is 12 percent? Why or why not? A No; because the Plis 0.97 B No; because the Pl is 1.05 Yes; because the PL is 0.97 D Yes; because the Pl is 1.05 4 Points: 1 You are buying a condo in Oakville for $1.55 million, and are paying $675,000 down in cash. Today, you are financing the balance with a 25 year loan with monthly payments. If this loan has an annual percentage rate of 7.32 percent, what is the approximate amount of each loan payment? A $6,000 B $6,364 $7,058 D $10,910
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